Companies undergoing review by the Committee on Foreign Investment in the United States (CFIUS) have a due process right to notice of unclassified evidence and an opportunity to rebut that evidence, according to the US Court of Appeals for the DC Circuit. The appellate court reversed a district court decision that upheld orders by CFIUS and the President blocking a foreign investor’s acquisition of four US companies for the purpose of developing wind farms in Oregon. While the changes to the CFIUS review process required by this appellate ruling, if implemented, could benefit parties whose transactions raise significant national security concerns, they likely will also create delays, thus harming parties whose transactions are time-sensitive.
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